CAT, TOT told to hold off on broadband network investments

[george]

CAT, TOT told to hold off on network investments

By USANEE MONGKOLPORN

THE NATION

Published on November 16, 2010

BANGKOK: -- Information and Communications Technology Minister Chuti Krairiksh has told TOT and CAT Telecom to put on hold major network investment plans pending a complete mapping of locations for the network roll-out as

Chuti said yesterday that the move was to promote the practice of sharing the country’s network infrastructure and reduce redundant investment among private and state agencies.

He said the state and private telecom operators would be called on some time this year to sign a memorandum of understanding on network-infrastructure sharing.

CAT planned to spend about Bt6 billion on developing a broadband service based on a fibre-optic network, while TOT planned to spend about Bt13 billion on the roll-out of the Next Generation Network (NGN).

Chuti also told CAT to suspend its planned Bt3.8-billion investment on installing software in its CDMA (code division multiple access) 2000 1-x cellular network in 51 provinces to boost its network data-transmission speed. He wants CAT first to conclude its talks with Hong Kong’s Hutchison Telecom about the takeover of Hutchison’s CDMA network in 25 provinces.

He said spending to boost data-transmission speed would be a waste if CAT failed to take over the network.

Hutchison Telecom has still not decided whether to sell its network to CAT, which wants to merge the two CDMA networks to provide a nationwide service. CAT has made an initial offer to Hutchison, though Chuti declined to reveal the amount. He said earlier that it would be less than Bt4 billion.

“If CAT fails to secure a deal with Hutchison Telecom, it will have to be aborted and CAT will have to see how it can further develop its CDMA business,” Chuti said.

He added that he had no idea if there were other companies in Thailand in talks with Hutchison Telecom as well.

Hutchison-CAT Wireless Multimedia, a 75:25 joint venture of Hutchison Telecom and CAT, leased the CDMA network in 25 provinces from Hutchison Telecom’s wholly owned subsidiary BFKT to market the service under the Hutch brand and CAT’s marketing contract.

Chuti said the TOT board had also told him that the telecom organisation would finish its terms of reference (TOR) for the plan to roll out the nationwide 3G (third-generation wireless broadband) network on the 2.1-gigahertz spectrum, worth Bt17 billion, on November 28.

The minister had ordered TOT to get the service off the ground by next April. He also ordered the state agency to revise the original TOR and include the formation of a TOT subsidiary to run a nationwide 3G service or its potential partners could have registered capital of Bt500 million instead of Bt1 billion.

He said that if TOT failed to finish the TOR quickly he would see it as meaning that someone wants him out of his post so they can change the TOR as they desire.

TOT debuted the 3G network in Greater Bangkok last December, and the Cabinet recently approved its plan to roll out a nationwide network.

-- The Nation 2010-11-15

[Tokay]

I am embarrassed for them. Seriously.

[animatic]

I am embarrassed for them. Seriously.

I have to agree. There is a phrase: 'Taking the long way round the barn'.

Seems they are buying barns in 20 different provinces, in an effort to

make the route as long as possible.

All to save face for the individual controllers of the several entities involved,

rather than any consideration of the public good. 7 years behind the world,

and still trying to slow things to a crawl, just in case they and friends don't

get the biggest slice of pie.

Edited November 15, 2010 by animatic

[selftaopath]

I am embarrassed for them. Seriously.

I have to agree. There is a phrase: 'Taking the long way round the barn'.

Seems they are buying barns in 20 different provinces, in an effort to

make the route as long as possible.

All to save face for the individual controllers of the several entities involved,

rather than any consideration of the public good. 7 years behind the world,

and still trying to slow things to a crawl, just in case they and friends don't

get the biggest slice of pie.

Amusing Thailand. What a funny place. No wonder so many people are smiling. Or maybe if they don't smile/laugh they will cry?

No love of country that I can see. It's everyone for him/herself. Get as much as you can folks - welcome to Land of Scams (LOS).

[woodyleonhard]

As usual, this story leaves me wondering what in the world they're actually talking about.

For example,

Chuti also told CAT to suspend its planned Bt3.8-billion investment on installing software in its CDMA (code division multiple access) 2000 1-x cellular network in 51 provinces to boost its network data-transmission speed

Are they talking about upgrading EV-DO? CAT already has Rev A, so are they looking at converting to Rev B? If so, the upgrade's easy and cheap.

I also don't understand this sentence at all:

He also ordered the state agency to revise the original TOR and include the formation of a TOT subsidiary to run a nationwide 3G service or its potential partners could have registered capital of Bt500 million instead of Bt1 billion.

All in all, I want to believe that this is progress, but it seems like more muddling. Trying to roll out a 3G network via regulation is a horrendous job. Competition is the only approach that'll get us good service at a reasonable price.

[kalbo123]

#Cat example..recently I have changed my contract with them from 2Mb to 8Mb, after they did some work at my house they said it worked,

it was still very slow. (no streaming etc)

Ofcourse I complained, they said: you are to far from "the box" whatever that maybe...... but you can never get that speed.

I wonder why they sold it to me in the first place..

But anyway I said if I can never get that speed I want my old contract back..

They said that will cost you 1700 something Baht...for breaking the contract..

This is CAT...

[givenall]

Chuti said yesterday that the move was to promote the practice of sharing the country’s network infrastructure and reduce redundant investment among private and state agencies.

It really means, to better identify who gets the payoffs

[Northman061]

The day the Elites allow Global and International businesses to own, run, manage and control National infrastructure projects and services, only then will this Elite run behemoth running Thai business die.

[JusMe]

So worried about the next generation when they haven't managed to get this one right

[animatic]

So worried about the next generation when they haven't managed to get this one right

NO.

They haven't even ok'd installing the LAST generation.

[Valentine]

Looks to me like one step forward & 10 steps back. It is seriously embarrassing for a country that has the resources to have had this up & running a long time ago.

[Sydebolle]

Unbelievable. Stone age is alive here in this country. May I suggest to buy all vintage teletype and telex machines as this will be sold to the buffalos in this country as the latest invention of those clowns at CAT and TOT at twenty times the price of brand new equipment. Medieval bulls produce medieval sh..t. Welcome to the 21st century BC where pockets are here to be lined nicely.

And then people wonder why regional operators (like me) move out of Thailand into more civilized infrastructures like ..... Lao PDR or Vietnam

[MikeCNX]

Does this mean more money for bigger international pipes?

[Zolt]

Wait, redundant infrastructure is... good!

That's the whole principle Internet is built around.

[Zolt]

And then people wonder why regional operators (like me) move out of Thailand into more civilized infrastructures like ..... Lao PDR or Vietnam

Am in Vietnam right now and can confirm. Blazing fast internet speeds. But they block facebook. Suckers.

[powderpuff]

Chuti said yesterday that the move was to promote the practice of sharing the country's network infrastructure and reduce redundant investment among private and state agencies.

It really means, to better identify who gets the payoffs

Yes & it means that TRUE can pay for all the infrastructure & then later the Politburo will tell them they have to share (for free) with the state owned parasites.

[jfchandler]

Apart from the inevitable political meddling, it strikes me the more important, fundamental question for the future is this:

Will Thailand get a better and sooner 3G network by marshaling all its resources and attention to building a single national network infrastructure to be leased or contracted by the various telcoms, as seems the current government's direction?

Or will the better and sooner outcomes do better in an environment where the various big telcoms are left to develop and build their own individual networks under government licenses, and then fight it out with each other for customers?

The theory of capitalism would suggest competition would yield the best market result. But considering the various players involved here, and the interaction of ever-changing governments and the various telcoms, one wonders how long a working nationwide network would take to develop under that kind of environment.

Either way, I feel a headache coming on....

[nikster]

Apart from the inevitable political meddling, it strikes me the more important, fundamental question for the future is this:

Will Thailand get a better and sooner 3G network by marshaling all its resources and attention to building a single national network infrastructure to be leased or contracted by the various telcoms, as seems the current government's direction?

Oh please - the only reason that was ever suggested is to TOT can build that network and then rent it out, and get, guess what, concession fees for that, money for nothing. Just like they're already doing.

Concession fees in effect mean that AIS and DTAC and True pay TOT and CAT lots of money for doing absolutely nothing. For "licensing the spectrum". Or for just being there and taking the money.

The "problem" with 3G is that concession fees are only for 2G. So TOT and CAT want to somehow ensure they will keep getting free money from the others, while the others want to make sure they don't have to pay. And one brilliant idea that they had was the one where resources are bundled and "the government" e.g. TOT and CAT get to build the 3G network, and then rent it out - and collect their fees. In reality I don't think it would ever work, given how competent these entities are. What they should do is hand out 3G licenses to the three big players, and be done with it.

I don't really get anything in the above article - no idea what that means. I thought the minister has no power to tell CAT and TOT what to do. Otherwise, how was CAT able to stop the 3G auction? It makes no sense...

[elshaheen]

Stick the wire / cable up some politican's butt and tell them it's a stick of explosive and if they don't run fast to where the cable is supposed to go > BOMB.

[george]

Thailand's embarrassing Internet:

Hutch drops CAT-CDMA merge: